Section 181 Grandfathered
The federal film tax incentive known as Section 181 will expire December 31st, 2016. The incentive allows film investors to minimize their risk by deducting their investment against passive income as soon as spending begins (capitalization of the offering).
However, the incentive will sunset December 31st. A bill has been introduced to once again renew but, based on past renewals - and considering how slow Washington moves, and a new administration - we can anticipate many months will pass before the bill comes to a vote; and who knows if it will pass. We can be sure there will be a gap until such time 181 renews where investors cannot deduct their investment as per the incentive.
We at Oroloro Entertainment are happy to report that our comedy feature film MegaBall$ has been grandfathered in, and the tax benefit for investors will not expire, but stay with our project. This gives us a very specific advantage over other films not covered by 181, making our project more attractive to prospective investors. Combining the benefits of 181 and state/local incentives, investors can see a substantial reduction in the financial risks of film investment. This is a great enhancement to our project, and giving us an edge when we promote MegaBall$ at the Sundance Film Festival January 21, 2017.
For more information on how Sect. 181 can benefit you check with your tax advisor - or, if you wish, send us an email and we will connect you with our lawyer (who was very involved in the drafting of Sect. 181). You may also 'Google' "Section 181" to see many legal opinions of the incentive.